A machine cost 120,000 has annual depreciation of 20,000 and has accumulated depreciation of 90,000 on December 31, 2006. On April 1, 2007 when the machine has a market value of 27,500, it is exchanged for a machine with a fair value of 135,000 and the proper amount of cash is paid. The exchange lacked commercial substance.;A) The gain to be recorded on the exchange is what dollar amount?;B) The new machine should be recorded at what dollar amount?
Paper#27031 | Written in 18-Jul-2015Price : $32